30. In a make-or-buy decision, a potential supplier comes to you offering to make your product for you for you to resell to your customers. Your cost structure per unit looks like this: DM $11 DL $13 VOH $ 7 FOH $10 Your capacity is 100,000 units and you always sell all 100,000 units you make. You also have $500,000 of administrative fixed costs which you cannot avoid. If you accept the supplier's offer, you will be able to avoid 70% of the Fixed Overhead. Ignoring other factors such as losing full control of the quality of your product, at what price would your net income be the same whether the supplier makes your product or you continue to make it ? O $31 O $34 O$38 O $44 O $49

3. Tri-products is trying to decide whether to make-or-buy an accessory item for one of their products. It is projected that this item will sell for $10 each. If the item is outsourced, there is virtually no cost other than the $6 per unit that they would pay their supplier. Internally, they have two choices. equipment, but results in a $4 per unit cost. but its per unit cost is $5. Regardless of whether the item is subcontracted or produced internally, there is a 60% chance that they will sell 50,000 units, and a 40% chance that they will sell 100,000 units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using decision trees and EMV, what is their best choice? Process A requires an investment of $120,000 for design and Process B requires only a $100,000 investment,

Flounder Tech produces 60000 iPhone adapters with the following costs: Direct Materials $13000 Direct Labor 11000 Variable Overhead 3000 Fixed Overhead 12000 None of Flounder's fixed overhead costs can be reduced, but another product could be made that would increase profit by $6900 if the adapters were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the adapters, what is the maximum external price that Flounder would be willing to accept to acquire the 60000 units externally? O $33900 $32100 O $45900 ○ $39000

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The clock division of Control Central Corporation manufactures clocks and then sells them to customers for $10 per unit. Its variable cost is $4 per unit, and its fixed cost per unit is $2.50. Management would like the clock division to transfer 8.000 of these clocks to another division within the company at a price of $5. The clock division could avoid $0.50 per clock variable packaging costs by selling internally. Required:a. Determine the minimum transfer price, assuming the clock division is not operating at full capacity and what is your interpretation of these results?b. Determine the minimum transfer price, assuming the clock division is operating at full capacity and what is your interpretation of these results?c. Why transfer pricing policy can be interpreted negatively and positively? Give an explanation!

Answer the following questions. 1. Douglas Computers makes 5,900 units of a circuit board, CB76 at a cost of $220 each. Variable cost per unit is $170 and fixed cost per unit is $50. Peach Electronics offers to supply 5,900 units of CB76 for $200. If Douglas buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Douglas accept Peach's offer? Explain. 1. Douglas Computers makes 5,900 units of a circuit board, CB76 at a cost of $220 each. Variable cost per unit is $170 and fixed cost per unit is $50. Peach Electronics offers to supply 5,900 units of CB76 for $200. If Douglas buys from Peach it will be able to save $20 per unit in fixed costs but continue to incur the remaining $30 per unit. Should Douglas accept Peach's offer? Explain. Begin by calculating the relevant cost per unit. (If a box is not used in the table, leave the box empty; do not enter a zero.) Make Buy Relevant costs: Unit relevant cost Douglas…

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Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $18 to produce and has a contribution margin of $9, while each unit of Product B costs $30 and has a contribution margin of $10. What is the differential revenue for this decision? Multiple Choice O O $21 $1 $13 $12

Dog Access produces two types of dog doors - Small and Large. The following information is available related to each product: Small Large Sales price per unit $650 $900 Variable costs per unit $150 $200 The Large doors account for 80% of total product sales and the Small doors accounts for the rest. Dog Access' fixed costs are rent ($50,000) and salaries ($235,000). Question 5.1: If Dog Access decides to sell Large doors only, calculate the break-even point in units. Round up to the nearest whole unit. NOTE: Enter only the number of units. For example if your answer is 10 units, enter only "10".

You have been approached by potential client who could bring you considerable business. She says, I would like to find an alternative vendor for future orders of 5,000 /y., but their pricing must be competitive. Your CFO has supplied you with the following information. Current product standards costs are as follows. . Selling price per unit . $5,000 . $1,400/ unit direct material  . $400/ unit variable labor  . $200/ unit variable overhead . $200/ unit fixed overhead (this figure is the results of the budgted fixed overhead $2,000,000 and budgeted sales volume of 10,000 units  . Income tax rate =40% The board of directors has requested a though presentation to determine whether taking on this potential customer si good idea. Assume that your factor ia fully operational and that you will not have any learning curve impacts. In your presentation, answer the following question from the board using the data from the CFO. 1. What is meant by cost variance? 2. What is an effective way to…